Kenny seeks apology over job losses

THE UNPRECEDENTED unemployment level of 354,000 was “truly shocking” according to Fine Gael leader Enda Kenny, who called on …

THE UNPRECEDENTED unemployment level of 354,000 was “truly shocking” according to Fine Gael leader Enda Kenny, who called on the Taoiseach to apologise for doing things “your way” and “mismanaging” the economy.

He said that based on the Department of Finance briefing for the Opposition, the Government will have to look for €5 billion in income tax and spending cuts this year and this “is a truly phenomenal amount at this stage of the year given where we are”.

Mr Kenny was speaking in the Dáil as Brian Cowen confirmed to the House that the number who lost their jobs last month rose by 26,500 or 8 per cent since last month to 354,000.

Mr Cowen said however, he took “full responsibility” for his decisions, pointing out that at the end of 2007 all economic forecasters in Ireland predicted growth of 2.5 per cent up to a maximum of 4 per cent.

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Outlining the jobless figures Mr Cowen said “there are 44,000 receiving payment in respect of part of a week and the unemployment rate for February is expected to be 10.4 per cent”.

Mr Kenny noted apologies by the chief executive of AIB and the chairwoman of ILP and asked Mr Cowen if he was prepared to say “‘I’m sorry for what we have caused and where we’ve overseen obscene wastage of public money over the years in so many budgets’. You said ‘I will do this my way’. Well your way Taoiseach, clearly is not working.” Mr Cowen said: “I take full responsibility for all decisions I’ve taken as a Minister . . . and as Taoiseach”.

He added that “much of the critique coming from that side of the House was the failure by Government to invest even greater amounts in public services” and he said that “we did bring in 10 surpluses in 12 budgets and where that went was in halving the debt”.

The February figures showed an “economic convulsion” that confirmed further measures were needed. There was a “collapse in tax revenues”, and “whatever measures are required or will be necessary will be taken by Government”, Mr Cowen added.

Mr Kenny reiterated four suggestions he had made, including reversing the 0.5 per cent VAT increase; the abolition of PRSI for employers who take on new employees in 2009; a loan guarantee scheme for small businesses and for the National Development Programme to concentrate on labour-intensive infrastructure projects such as school buildings.

Mr Cowen said the proposals had “their own merit” but “it is highly unlikely that any of them actually meet the basic requirement of raising revenue – in fact the contrary”.

Marie O'Halloran

Marie O'Halloran

Marie O'Halloran is Parliamentary Correspondent of The Irish Times